Ad network ValueClick will buy online ad technology player Mediaplex in a
$43.9 million stock deal that both firms said would create a full-service
digital marketing powerhouse.
Under the terms of the agreement, Mediaplex’s shareholders will receive
.4113 shares of Westlake Village, Calif.-based ValueClick for each share of
Mediaplex common stock, or about $1.32 per share, a 45 percent premium over
Mediaplex’s Friday close of $0.91.
Following the acquisition, San Francisco-based Mediaplex would become a
wholly owned subsidiary of ValueClick. Mediaplex’s president and chief
executive officer, Tom Vadnais, will continue to serve as CEO of the unit.
The purchase, which requires shareholder and regulatory approval, serves
to beef up ValueClick’s technology business with a highly regarded player in
the field. Mediaplex, best known for its ad serving platform for
advertisers, saw a sizable expansion of its own business last week,
purchasing the advertising agency clients of ad server Interadnet.
According to the companies, Mediaplex’s MOJO technology — which is
geared toward advertisers — would be combined with ValueClick’s
lesser-known Dynamo ad server, which to date has been largely a
That combination aims to build a DoubleClick-like one-stop-shop for
publisher and advertiser serving technology, as well as online media.
Unlike the larger CPM-based firm, however, ValueClick sells its inventory on
a cost-per-click or cost-per-action basis. (DoubleClick, the industry
leader, also owns a 10 percent stake in ValueClick.)
“The acquisition of Mediaplex continues to build our product suite so
that we can provide our customers with comprehensive choices and services,”
said Jim Zarley, ValueClick’s chairman and chief executive officer. “Being
able to extend our product offerings while achieving the significant cost
reductions we have planned will ensure both the growth potential and
financial stability that is needed in the market.”
As a result, ValueClick will pitch Mediaplex’s products to its
advertising clients, which includes the Coca-Cola Company, GlaxoSmithKline
According to Vadnais, the joint advertiser and publisher product suites
will “establish a powerful combination of service offerings.”
We believe this merger will yield benefits both internally and for both
our respective e-business clients,” he said.